Question

The interest rate on a car loan has decreased 22.3% over the last 10 years and is now 8.1%. What was the rate 10 years ago?

Answer 1

Answer:

For this case we can set a proportion rule like this:

$\frac{8.1}{100-22.3} = \frac{x}{100}$

where x is the interest rate 10 years ago and if we solve for x we got:

$x = 100 *\frac{8.1}{77.7}= 10.42%$

So then the interest rate 10 years ago is about 10.42 %

Step-by-step explanation:

For this case we can set a proportion rule like this:

$\frac{8.1}{100-22.3} = \frac{x}{100}$

where x is the interest rate 10 years ago and if we solve for x we got:

$x = 100 *\frac{8.1}{77.7}= 10.42%$

So then the interest rate 10 years ago is about 10.42 %